ECOFIN Council (5 May 2026): Stronger EU Cooperation to Fight VAT Fraud

• EU finance ministers are expected to agree on new rules granting EPPO and OLAF access to EU‑level VAT information, significantly strengthening the fight against VAT fraud. [consilium.europa.eu]
• The initiative reflects a continued EU focus on closing the VAT gap through better data sharing and cross‑border cooperation between enforcement authorities. [consilium.europa.eu]
• VAT fraud prevention is positioned as a strategic priority alongside broader tax and financial governance discussions at ECOFIN level. [consilium.europa.eu]

Article

At its meeting of 5 May 2026, the Economic and Financial Affairs Council (ECOFIN) is expected to take an important step in the EU’s fight against value added tax (VAT) fraud. According to the Council’s agenda highlights, finance ministers should agree on new rules allowing the European Public Prosecutor’s Office (EPPO) and the European Anti‑Fraud Office (OLAF) to access EU‑level VAT information. [consilium.europa.eu]

This initiative aims to strengthen investigations into complex and cross‑border VAT fraud schemes by improving data availability and cooperation between EU enforcement bodies. VAT fraud — particularly missing‑trader and carousel fraud — remains a significant contributor to the EU VAT gap, and access to timely, comprehensive transaction data is seen as critical to more effective enforcement.

The ECOFIN discussion places VAT fraud firmly within the EU’s broader tax and financial governance agenda. Enhanced access to VAT information builds on earlier EU measures focused on administrative cooperation, digital reporting, and the use of data analytics to detect fraud patterns. From a policy perspective, the move signals a continued shift towards data‑driven VAT enforcement at EU level, complementing national initiatives and future reforms under VAT in the Digital Age (ViDA).

For businesses, especially multinational companies operating across the EU, the measures underline the importance of robust VAT data governance, accurate transactional reporting, and audit‑ready systems. As cooperation between EU‑level authorities increases, inconsistencies or weaknesses in VAT reporting may become more visible across jurisdictions.

Official source

• Economic and Financial Affairs Council, 5 May 2026 – Agenda highlights (Council of the EU):
  https://www.consilium.europa.eu/en/meetings/ecofin/2026/05/05/ [consilium.europa.eu]